USA > Georgia > The Confederate records of the State of Georgia, Vol 4 > Part 26
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471
GOVERNOR CHARLES J. JENKINS
quire it more than another unfortunate, who, at times, can not give his family bread by reason of the high price of provisions? Sound political economy and right rea- son are against all such interferences with prices and values in commercial transactions. There are times when the use of money is worth much more than at others. With us it is really worth less than the legal rate of in- terest, but is often worth more. The policy of usury laws generally is, to place the legal rate of interest at the lowest point to which, in a series of years, it would go if untrammelled, and to keep it there, despite the varying relations of demand and supply. Hence, law- abiding capitalist usually prefer other modes of employ- ing money. Active capital, like running water, will al- ways leave an obstructed for an unobstructed channel open to it. But experience proves that usury laws, as a general rule, are only obstructions, in money lend- ing. to conscientious or to cautious men. Their withdrawal, leaves a more open field to the un- scrupulous and the daring, enabling them to extort from the borrowing class higher rates than with free compe- tition could be maintained. Thus it appears to me the restraint imposed upon this branch of business is not only wrong in principle, but fails to afford the intended protection. There is at this time in Georgia a great want of money. Some need it to revive a suspended business-other to commence a new, in place of an old enterprise, utterly broken up. The capitalist abroad would bring his money here, if we were allowed to charge for its use what it is worth, without incurring forfeiture. It is probably wise, however, for any people to make decided changes in their monetary system gradually.
I suggest for your consideration, the expedieney of
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so modifying the law on this subject as to make seven per cent. the legal rate, where interest is chargeable ac- cording to law, and no rate fixed by contract; and to pro- vide further, that any rate of interest not exceeding ten per cent, may be established by, and collected under, a contract, for the payment of money. This advance will probably be sufficient to test practically the merit of the proposed change, and it will be easy from this point to recede or advance further, as experience may dictate.
INCREASE OF PAUPERISM.
Owing to the sudden emancipation of persons of color, and their consequent deprivation of unfailing provision, hitherto enjoyed, for their wants, whether in infancy, in old age, or in sickness, there will probably be for a time at least a great increase of pauperism. Against its growth from idleness or vice, stringent legal penalties should be directed, and for such cases probably sufficient guards are provided in the new code. But for the un- avoidable poverty and destitution, involving no degree of criminality, provision must be made. Your constitu- ents, by the very act of emancipation which originates this new burthen, have been in a great degree impov- erished, and it is hard that the two evils should simul- taneously, in the hour of exhaustion, press upon them. Only a resolute and generous people could bear with equanimity the great loss, and its superadded annual product of loss. But precisely because they are both resolute and generous, they have, with equanimity, real- ized the fact and its consequences, and intend to do their whole duty, social and moral, as well as political. But it is neither necessary nor right that the whole burthen should be thrown upon them.
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473
GOVERNOR CHARLES J. JENKINS
Pauperism is destitution of accumulated means of subsistence, combined with inability, from physical or mental causes, to produce them; but it only becomes a matter of public concern when no private relief is af- forded. As a simple fact, it has always existed among that class, but has never before challenged attention as a social evil. Why this difference? Because under the exploded system, each pauper African had a master who cared for his wants-cared for them well-cared for them cheerfully. How was he enabled to do this, year after year? From the fact that associated with these paupers. as well by ties of consanguinity, as in fetters of bondage, were others capable of remunerative labor. The sun- port of the pauper was nominally a charge upon the master, but he defrayed it from the earnings of the laborer, standing in the same relation to him. Now his pre-existing relation both to pauper and laborer is an- nulled. The pauper is no more a charge upon him than on the rest of the body politic. The fruits of the labor- er's toil are transferred from him to the laborer himself. But the relations of the class and of kindred, between the pauper and the laborer, are undisturbed. The ques- tions to be considered in view of the whole subject are. "does the transfer of the fruits of the laborers' toil, dis- charge them wholly from the burthen of supporting the pauper-the master having lost those fruits upon which the pauper's support was a charge, does it still adhere to him? It appears to me that whether regarded as questions in political economy, or abstract equity, the answer must be negative.
There is, however, another aspect of the case which must not be overlooked. The abolition of the relation of master and slave, which was a private relation, makes
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the existing pauperism a matter of public concern, to the relief of which emancipated laborers, as a class, though not exclusively bound, are liable to contribute. I re- spectfully advise that a moderate capitation tax, such as no individual would feel oppressively, be laid upon each adult person of color, capable of earning wages, and devoted exclusively to the support of paupers, of the same class. I suggest also that the tax collected for this purpose in each county, be paid to and dispensed by the justices of the inferior court of that county, under such rules and regulations as you may choose to pre- scribe.
CLAIM OF COTTON.
In answer to a communication from Provisional Gov- ernor Johnson, relative to certain cotton claimed by the State of Georgia, and captured in Savannah by the Fed- eral army, Mr. Secretary Mccullough,* of the treasury department, informs him by a letter, a copy of which accompanies this message, that the State must prosecute her claim in the court of claims, United States. It will be my pleasure to take such action in the case as you may direct.
IMPROVEMENTS TO PUBLIC BUILDINGS, ETC.
I transmit herewith a copy* of the report of Col. Fro- bel, Engineer, upon repairs, and improvements, of the public buildings and grounds, to which I invite your care- ful consideration. Whilst even in public buildings and grounds there may be exhibited culpable extravagance, in useless ornamentation, there is a certain degree of
*Paper not found.
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GOVERNOR CHARLES J. JENKINS
care in preserving, and of taste in beautifying them, the neglect of which is wholly inexcusable. The suggestion of Col. Frobel, and of your committees charged with this subject, will aid you more than anything I can say.
Whatever of error may be found in the recommenda- tions herein submitted, I trust will be corrected by your superior wisdom, aided by light from the unerring source of all truth. That is our surest reliance, and best hope of our suffering and struggling constituents.
Respectfully submitted,
CHARLES J. JENKINS.
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APPENDIX.
(No. 1.)
ESTIMATE OF EXPENDITURES FOR YEAR 1866.
Arrears of civil list, 1865 $ 60,000.00
Due the Penitentiary- 18,000.00
Due the Lunatic Asylum, on appro'n., 1865 18,375.00
Civil Establishment, 1866 88,600.00
Contingent Fund, 1866 16,000.00
Printing Fund, 1866
25,000.00
Support of paupers, salaries of officers, etc., Lunatic Asylum, 64,500.00
Support of Academy for the Blind. 6,000.00
Educational Fund, (common schools,) 23,355.00
Annual income guaranteed to the University_ 8,000.00
Balance, estimated expense of the Legisla- ture, 75,000.00
Interest on the public debt. 154,000.00
Estimated interest to accrue on new debt 150,000,00
Miscellaneous appropriations, 100,000.00
$806,830.00
477
GOVERNOR CHARLES J. JENKINS
(No. 2.) .
ESTIMATE OF EXPENDITURES FOR 1867 AND AFTERWARDS.
Civil Establishment,
$ 88,600.00
Contingent Fund,
16,000.00
Printing Fund, 25,000.00
All expenses of Lunatic Asylum 64,500.00
Appropriation to Academy for the Blind 6,000.00
Educational Fund, (common schools,) 23,355.00
Annual income guaranteed University 8,000.00
Estimated expenses of General Assembly 100,000.00
Estimated interest on Public Debt. 360,000.00
Miscellaneous appropriations, 100,000.00
$791,455.00
:
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· CONFEDERATE RECORDS
(No. 3.)
ESTIMATE OF INCOME IN 1867, AND AFTER- WARDS.
Net proceeds from Western & Atlantic Rail- road, -$600,000.00
To be raised by ad valorem tax of 1/8 of 1 per cent., 450,000.00
$1,050,000.00 .
(No. 4.)
Table showing results of different rates of taxation, ad valorem, on the assessed value of property, (other than slaves,) in 1860:
One-half of one per cent. on $369,627,722 __ $1,848,139.60 One-fourth of one per cent. on $369,627,722 __ 924,069.80 One-eighth of one per cent. on $369,627,722 __ 462,019.90 One-tenth of one per cent. on $369,627,722 __ 369,627.00 One-twelfth of 1 per cent. on $369,627,722 308,023.00
$3,911,879.30
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479
GOVERNOR CHABLES J. JENKINS
WEDNESDAY, JANUARY 24th, 1866.
EXECUTIVE DEPARTMENT, .
MILLEDGEVILLE, 24 January 1866.
To the Senate and House of Representatives-
The Constitution limits the number of Secretaries in the Executive Department to two. There are times, (such as the present,) when two are unable to discharge the duties of the office. I have now employed, and shall, from time to time, as circumstances may require, employ a temporary assistant in this office; the authority for which I derive from the seventy-fifth Section of the Code. My belief is that it will be necessary to retain the assist- ant, now employed, three months, and if the General Assembly would appropriate money to compensate him for that length of time, at the rate which may be allowed the Secretaries in this department, it would seem to be just, and would avoid throwing upon the contingent fund, a known item of expenditure. I hope I shall, after the expiration of three months, be able to dispense with such assistance, until the next meeting of the General Assem- bly. I remark, however, that the reduction of the num- ber of Secretaries to two, throws upon those two at all times, a very heavy burthen, and would seem to entitle them to higher compensation, than was allowed when the labor was distributed among three.
.
Respectfully submitted,
CHARLES J. JENKINS,
Governor.
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CONFEDERATE RECORDS
TUESDAY, JANUARY 30th, 1866.
EXECUTIVE DEPARTMENT,
MILLEDGEVILLE, GA., January 30, 1866.
To the Senate and House of Representatives-
I herewith transmit to you a communication* from the Superintendent of the Western & Atlantic Railroad, unavoidably delayed to this time. I trust it will enable you to make an approximate estimate of sum necessary to refit the road.
It will be seen that the sum total of purchase from the United State authorities is four hundred and sixty- four thousand, one hundred and fifty-two 25/100 dollars. A disagreement occurred between those authorities and the Superintendent as to the terms of sale and time of payment, which induced me to communicate withi Gen- eral Thomas, commanding division of the Tennessee. The terms exacted were: the giving of a bond, with ap- proved personal security for the payment of the pur- chase money and interest two years after the date of the contract, or the payment in equal monthly installments, during the two years.
No bond having been tendered, monthly installments were demanded as the alternative. In his reply to me, dated January 4th, General Thomas, after stating his understanding of the terms, says: "I am willing, for the present, to defer the collection of the stipulated monthly installments, until the legislature has time to provide for a compliance with that condition, and I will
*See enclosure No. 2, Dec. 11, 1865.
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GOVERNOR CHARLES J. JENKINS
instruct Maj. Crilley to defer the collection of the monthly payments, if you will urge upon the Legislature, at its next session, the propriety and necessity of authorizing Mr. Baugh, and the Treasurer of the State, to execute a bond pledging the faith of the State to the payments of the debt incurred by it in the purchase from the United "States of Railroad property within a period not exceed- ing two years, with interest at 7 3/10 per cent. per annum."
As the payment of monthly installments may, and in the opinion of the Superintendent will, embarrass the road, I urgently recommend that the General Assembly, by an Act to be speedily passed, authorize the execution of such a bond.
I infer from the phraseology used by General Thomas, referring to the time of payment ("within a period not exceeding two years") that there will be no objection to the insertion of a clause providing for earlier payment, in the discretion of the State. This would enable the State, in case her bonds on long time can be negotiated at a rate of interest lower than 7 3/10 per cent., not only to save the excess during the two years, but to bring this debt under such general scheme as the General Assembly may think proper to adopt for the prospective adjust- ment of her finances.
I call your attention to that part of the Superintend- ent's report referring to a claim of the State of Geor- gia against the government of the United States for the occupancy and use of the road whilst in their possession. The Superintendent, entertaining the opinion that this claim should be promptly adjusted and such sum as might be found due the State applied to the payment of
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the debt for property purchased, as above stated, from that government. I also pressed this point upon General Thomas' consideration. In reply he says: "As to the claim which the Western & Atlantic Railroad may have against the United States for all profits and money re- ceived by them from the road, that, in no way, is con- nected with the matter of indebtedness of the State to the United States, in so far as the turning over of the road to the State is concerned. The settlement of that claim is provided for by Act of Congress, approved Jan- uary 31st, 1862, which provides for the appointment of commissioners who shall assess and determine the amount of compensation, (if any,) to be paid the road."
This subject will demand your attention during the present session. By the Act to which General Thomas refers, it is provided that the President, by and with the advice and consent of the Senate, shall appoint three commissioners who shall assess and determine the com- pensation to be made, and return their award for the consideration of Congress.
I believe this has not yet been done, but will be, prob- ably during the present session of Congress, and some competent person, or persons, should be appointed to represent the claim of the State of Georgia before the commissioners when appointed,
I further ask your attention to what is said in the report regarding the levying of a tax upon the gross earnings of the road, in which I trust the government of the United States will not persist against such re- monstrance as you may think proper to make.
You will see that the Superintendent closes his report with his resignation of the position. He accepted it un-
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GOVERNOR CHARLES J. JENKINS
der circumstances most embarrassing, and has, I doubt not, devoted himself to the execution of his difficult trust with a degree of zeal, energy and fidelity which entitle him to grateful consideration.
I trust he will find, in other employment, less annoy- ance and a more compensating return.
Respectfully submitted,
CHARLES J. JENKINS.
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MONDAY, FEBRUARY 5th, 1866.
The following message was transmitted to the Sen- ate, to-wit .:
EXECUTIVE DEPARTMENT, MILLEDGEVILLE, GEORGIA,
February 5, 1866. ,
TO THE SENATE-
I have before me for consideration a resolution orig- inating in your body "for making valid contracts be- tween white men and freedmen."
Doubtless the General Assembly in adopting it de- signed to benefit both parties equally, and to supply law for the interval between the reorganization of the State government and the passage of general statutes on the same subject now progressing. But after careful con- sideration, my belief is that such legislation if not posi-
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CONFEDERATE RECORDS
tively wrong is of doubtful propriety and entirely un- necessary. The resolution is not exclusively prospective in its operation; it declares that "all contracts made, or to be made between the white men and the freedmen shall be held good and binding on both parties." etc. It will be conceded that no Act of legislation can invalidate a good contract. Would it be more efficacious to give validity to an invalid contract? If invalid when made, whether from incapacity of one of the contracting parties from want of consideration passing to him, from fraud prac- ticed upon him, or from any other cause, it is his right to be released from it; and by an express provision of our constitution retroactive legislation injuriously affect- ing private right is prohibited.
It is the province of the judiciary to inquire into and determine the validity or invalidity of contracts; and this is done by applying to them general principles and rules of law existing when they were made. But this resolution provides that all contracts previously made between parties of a certain description "shall be held good and binding," meaning, of course, that they shall be so held by the judiciary. Were it intended (as I am sure it was not) that that branch of the government should enforce them, regardless of the facts surrounding them and the law entering into and governing them, when made, such intention would be wholly wrong and could not be carried into effect. If, on the other hand, the resolution introduces no new rule for the govern- ment of the courts, it is unnecessary and objectionable, because it may mislead.
There can be no doubt of the capacity of both the parties described within the usual range of their con- tracts. If there be defect of capacity in either regard-
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GOVERNOR CHARLES J. JENKINS
ing any particular class of contracts, let that defect be cured by prospective legislation, but leave the conse- quences of their past dealings to be determined by the courts. Such is the usual and the safer rule.
Influenced by these views, I return the resolution with my dissent, and respectfully ask its reconsideration.
CHARLES J. JENKINS.
TUESDAY, FEBRUARY 6th, 1866.
EXECUTIVE DEPARTMENT, MILLEDGEVILLE, GEORGIA, February 6, 1866.
The proper officers of the several banks of this State are hereby notified and required forthwith to make and transmit to this office their returns in conformity with the following resolution of the General Assembly, approved 6th February 1866.
Resolved, By the Senate and House of Representa- tives, That His Excellency, the Governor, be requested to call upon the several banks of this State to make a return of their condition conformable to the law now existing, and that the same be returned within ten days, and that the Governor be further requested to transmit said reports to the General Assembly when received.
CHARLES J. JENKINS,
Governor.
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CONFEDERATE RECORDS
TUESDAY, FEBRUARY 6th, 1866.
EXECUTIVE DEPARTMENT,
Milledgeville, 6th Feb., 1866.
To the General Assembly :
With this communication I transmit copies of the proceedings of the stockholders of the Bank of Augusta, the Augusta Insurance & Banking Company, the City Bank, and the Mechanics' Bank, located in the city of Augusta.
It will be seen that the two former make positive sur- renders of their charters, that the two latter have taken initiatory steps to the same end, and that they all have provided for the assignment of their assets, real and per- sonal, for the benefit of their creditors; this act having been, at the date of their communication, completed by the President and Directors of the Augusta Insurance & Banking Company.
You are well aware of the legislation of your prede- cessors, alluded to in resolutions of the stockholders, and of the action taken by the Executive, by authority of that legislation. It is not questioned, I believe, that these Banks, and those of the State generally, were at the commencement of the late war in a sound condition, carrying on, within the limits of their several charters, a legitimate banking business. There is abundant reason to believe that but for the large accumulation in their hands of State securities of different kinds, which were repudiated by the late State Convention, under pressure of Federal authority, and of irredeemable Confederate
487
GOVERNOR CHARLES J. JENKINS
Treasury Notes, to which accumulation they were con- strained to submit by an unusual and rigorous State policy, they would be in a condition to meet all their lia- bilities. If the existence of these facts be doubted, the truth of the case may be elicited by scrutiny into their management. If the recitals in their proceedings here- with be true, they present a strong claim upon the justice of the State, for such relief as it may be competent for the General Assembly to extend. Certainly it would seem reasonable, and beneficial, as well to them as to their creditors, that they be allowed to go into liquidation, under such restrictions as may avoid protracted and harrassing litigation, without impairing any security, provided by their several charters, for billholders and other creditors. I cannot dismiss the subject without remarking that if, by conforming their conduct to stat- utory requirements, the directors and other officers have been placed in a situation, which, if voluntarily assumed, would have subjected them to penalties imposed by prior legislation, justice, (not charity,) would suggest entire and prompt relief from those penalties. This just meas- ure of exemption from punishment, where there is no guilt, would work no possible injury to creditors.
These remarks are predicated upon the statements made in the accompanying papers, and are intended to apply, not only to the banks above named, their directors and officers, but to all others similarly situated. I com- mend the whole subject to your just and wise considera- tion.
I also communicate to the Senate, for the use of both bodies in turn, a memorial from a Convention of Freed- men, said to have been held in the city of Augusta. Very
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many of the subjects embraced in it have already been submitted to your consideration, and are now engaging your attention. On the whole subject of their status- their relation to the body politic-the large measure of protection and encouragement to which they are entitled, and the confidence I feel in your purpose to do all in the premises, that statesmanship and philanthropy may re- quire, I have already conferred freely with you.
I herewith lay before the House of Representatives, for the use, in turn, of both bodies, the final report of the Georgia Relief and Hospital Association, from which, I think, you will find that the complicated and difficult trust, undertaken by that body, has been discharged with com- mendable energy and fidelity. The two documents last referred to are so voluminous that with the existing pressure upon the officers of this department, copies could not be made of them without inconveniently delaying their transmission ; and hence the course adopted. .
By the Act of the Congress of the United States, passed 5th August, 1861, for the raising of internal rev- enue, the direct tax assessed upon the State of Georgia is five hundred and eighty-four thousand, three hundred and sixty-seven and one third dollars, ($584,367,331/3.)
One of the provisions of this Act authorized the as- sumption by the States severally of the collection and payment of their respective quotas, and upon such as- sumption and payment a deduction of fifteen per cent., (15 per cent.). Without further legislation only the tax of one year will now be collected, and the process of col- lection in Georgia, from the people directly, has com- menced, though but little progress has been made in it. Several of the Northern and Western States have, as I
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GOVERNOR CHARLES J. JENKINS
am informed, actually assumed its collection and pay- ment. My information is that the Secretary of the Treas- ury declines, without express legislation on the point, to permit this assumption by the States lately hostile to the United States. Such legislation may, during the present session, be entertained by the Congress, and although in our present status, we shall, standing without, witness a practical separation between the power of taxation and the privilege of representation, hitherto considered cor- relative and inseparable, in free governments. We may indulge the hope that, whilst our voices are suppressed, our just claims will not be ignored. On this, as on other points, patiently awaiting the prevalence of more liberal counsels, it is our part, as it is the unmistakable purpose of our constituents, to discharge our whole duty to the Government of the United States. Should the privilege be accorded, it may be after your adjournment, and in that event any action you may deem it proper to take on the subject must necessarily be hypothetical.
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